North Miami

Taxing Times

Business owners and residents protest massive water bill hike

By Erik Bojnansky

Reacting to the cries of several business owners and residents, the North Miami City Council instructed administrators to “tweak” significant utility bill hikes they say are needed to pay for the construction of a new water plant, during a meeting Tuesday.

At the same time, most council members said that, unlike past elected officials, they can't ignore the need to invest $130 million in upgrading and building a new water plant.

“This situation sucks. I'm sorry I have to be the one who does it,” said Councilman Scott Galvin.

Mayor Kevin Burns said if the council backs down now, and the current plant fails, thousands of homes would be left without water. If that happens, elected officials should not only be voted out of office, but arrested for “criminal negligence.”

Some homeowners, though, complained that they received no warning that their new utility bill would be twice as high as their last bill. Business owners said they are unfairly being asked to shoulder most of the burden. “You are here to help us, not to rape us and hurt us,” Richard Petite, owner of R&M Auto & Truck Repair, told council members.

Entrepreneurs, nonprofit directors and some residents said they may have to move away from North Miami. “In the 20 years I have been here, this is the first time I am eager to say that I am going to put up a for-sale sign,” said homeowner Gale Morris.

Last October, the council not only increased the base water bill from $9.68 a month to $10.33 a month, it also approved a new capital improvement fee of $14 a month for residential dwelling and $75.28 a month for nonresidential commercial accounts. After 2008, the capital fee for businesses and nonprofits operating in North Miami will go up to $150.56 a month.

Most of the rate increases are needed to pay for a new reverse osmosis plant that will cost more than $102.7 million, as well as $25 million to rehabilitate the Winson Water Plant.

Public Works Director Mark Collins said the council's decision to upgrade and eventually replace Winson Water Plant was a “bold step.” Prior governments avoided making any significant investment in a plant that has been operating since 1962. Although Collins’ staff has worked hard to maintain the plant, many of the pipes that service the plant are rusted and need to be replaced.

“This plant was up during the Kennedy administration,” Councilman Galvin said. “Basically we got an old 1952 Ford that is being held together with bandages.”

Adding to the need for a new plant is the scarcity of water in the Biscayne Aquifer, North Miami's main source for drinking water, as well as a comprehensive plan that encourages future development, Collins said.

Burns said the city can't expect much outside assistance in constructing a new plant. “The federal government looks at water plants as usage so if you use water, you pay for it,” he said. Since previous councils used the city's reserve fund to balance the budget without raising taxes, North Miami has no emergency funds to fall back on. But water users didn’t think they should pay for the cowardice of previous councils.

“We kind of feel like this is taxation without representation because I can't vote you all out of office,” lamented video store owner Bob Rich, who received a tax bill of $550 for three months. “You want to pay it? I'm not going to pay it. I refuse to pay it!”

Shirley Richardson, director of M Ensemble Theater Company, said her nonprofit group doesn't have the budget to pay the high utility fees. She used to only have to worry about a $21 utility bill every three months. Now it’s $300 every three months.

Councilwoman Marie Erlande Steril, who voted against the utility bill hikes, said the new fees are impossible for most residents and businesses to pay. “Tonight the water bill needs to be fixed,” she said.

Burns countered that delaying an upgrade would be more costly in the long run. “This is not going to go away,” the mayor said.

At the same time, Burns and other council members asked the administration to look at ways to lower the fees for small businesses.  

“We must bring this down at any chance,” said Councilman Galvin.